SMA say auctions still a good source for used cars

Motor dealers are reporting increasing difficulty in sourcing good quality used cars, but are still able to rely on motor auctions, according to the RMI’s Society of Motor Auctions (SMA).

‘2009 has seen a booming used car market, but this is at risk of becoming a victim of its own success,’ according to Louise Wallis, Head of the SMA.

She continues: ‘Not only is used car demand high, but the supply of used cars is increasingly tight due to an increasing fleet cycle, reduced de-fleeting of self drive hire fleets, as well as manufacturers reducing their own registrations. This situation is unlikely to change in the foreseeable future. We have experienced a period of lower new car registrations, which in turn has translated into a smaller pool of available good quality used cars, which will continue.’

In view of the changing used car landscape, dealers need to look at all options for acquiring used car stock. A particularly good route to obtain vehicles is through motor auctions.

‘Despite the tightening of supply, motor auctions remain the most reliable source for used stock,’ said Wallis

However, Wallis believes that the introduction of September’s new 59 plate could lead to a rush for used stock by the trade at the end of August: ‘Dealers who wish to replenish used vehicle supplies prior to September should make sure they acquire stock as soon as possible, as the end of the month is expected to be very busy in many auction houses. ‘

Source: Autowired